News Broadcasting
Digital convergence- Finally substance replaces hype: Report
MUMBAI: Despite a history of hype and limited actual success in the 1990s, digital convergence has now become a reality in several countries.
Deloitte’s Technology, Media and Telecommunications (TMT) industry practice has come out with a report.
The report states that companies who do not adapt to this trend face failure. The report is called Digital Convergence: The Trillion Dollar Challenge. It asserts that convergence will create new product categories and new markets. But, more importantly, in some cases it will change the structure of existing industries, shifting the balance of power and altering the basis of competition.
The report notes that convergence became a buzz word during the dot-com boom, but it didn’t deliver. The concept was based on future technologies, but with the expectation of immediate revenue, and companies didn’t stop to consider and understand what customers actually wanted and needed.
Now, the report says, a wealth of convergence products and services is emerging, from online music to Internet Protocol (IP) appliances. Each of these offerings satisfies a real customer need. And, most are already generating real revenue and earnings.
Some of the most significant converged services are expected to be from Voice over IP, with industry analysts forecasting $1 trillion in revenue by 2010. In addition, Internet Protocol (IP) appliances, which will include next-generation digital music players, home entertainment services, home video phones and enterprise collaboration services, will also generate sizeable revenue.
Other emerging products and services expected to generate substantial revenues by 2010 include enterprise collaboration software, IP television, mobile phone content, networked games and online music.Businesses that leverage digital convergence as a competitive advantage have the potential to benefit greatly.
However, convergence will also have the power to obliterate business models in a relatively short time frame, for example, the way increased bandwidth and advanced devices are challenging the long-term viability of wireline voice. The extent to which convergence adds or destroys value is a direct function of the extent to which a company anticipates, plans for and takes the lead in convergence.
Convergence is being driven by three underlying trends. The first is proliferation of digital data, which provides a common base for handling diverse types of information, numbers, words, music, pictures, video, and more, using the same devices, processing techniques, and media. The second is widespread connectivity, which helps bring diverse information together, and extends the value and capabilities of a device beyond its out-of-the-box functionality. The third is continuous advances in technology, from battery life to processor speed.
News Broadcasting
Network18 Q4 revenue grows 9.7 per cent, EBITDA at Rs 30 crore
PAT improves to Rs 306.6 crore, margins steady amid cost pressures.
MUMBAI: Not all news is breaking, some of it is quietly improving. Network18 Media & Investments Limited appears to be doing just that, tightening losses and stabilising margins even as costs continue to weigh on the business. For FY26, the company reported revenue from operations of Rs 1,955.1 crore, up from Rs 1,896.2 crore in FY25, signalling modest top-line growth in a challenging media environment. Total income stood at Rs 1,978.2 crore, compared to Rs 1,913 crore a year earlier.
Profit after tax came in at Rs 306.6 crore for the year, a sharp turnaround from Rs 3,225.4 crore in FY25, largely reflecting the absence of large exceptional items that had inflated the previous year’s numbers. On a more comparable basis, the company’s operating performance showed signs of gradual stabilisation.
However, the quarterly picture remained under pressure. For the March quarter, Network18 reported a loss of Rs 53.1 crore, narrower than the Rs 98.1 crore loss in the same period last year, but still indicative of ongoing cost challenges.
Expenses continued to track high. Total expenses for FY26 stood at Rs 2,235.7 crore, up from Rs 2,197.8 crore in FY25. Key cost heads included operational expenses of Rs 765.9 crore, employee benefits of Rs 475.9 crore, and marketing, distribution and promotional spends of Rs 427.1 crore, underlining the continued investment required to sustain reach and engagement.
At an operating level, margins remained under strain. Operating margin stood at 2.33 per cent for FY26, marginally higher than 1.77 per cent in FY25, while net profit margin remained negative at -13.02 per cent, though improved from -14.89 per cent.
On the balance sheet, total assets rose to Rs 8,957.6 crore as of 31 March 2026, from Rs 8,317.5 crore a year earlier. Equity strengthened to Rs 4,958.7 crore, while borrowings increased to Rs 3,112.8 crore, reflecting a higher reliance on debt to support operations.
Cash flows told a mixed story. While financing activities generated Rs 83.9 crore, operating cash flow remained negative at Rs -24 crore, highlighting ongoing pressure on core cash generation. Cash and cash equivalents, however, improved to Rs 33.9 crore from Rs 1.8 crore.
The numbers point to a company in transition growing revenues, trimming losses, but still grappling with structural cost pressures. In a sector where scale often comes at a price, Network18 seems to be inching towards balance, one quarter at a time.
